10/25/18
User: MississippiMan: Support and Resistance: slopechart_XLP.jpg
slopechart_XLP.jpg
A little study on trendlines. I set it up on this @$50 stock with the notion of entering short on the second touch of a bearish trendline with the intention of either making or losing $100 (100 lot). The results are inconclusive. 5 winners and 4 losers with 1 negated when price gapped up over the trendline. My conclusion is that entering a trade based solely on trendline second touches is reckless. However in conjunction with other factors, such as horizontal support/resistance lines and candlestick patterns it is worth consideration.
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